The Irrawaddy Magazine |
- This Week in Parliament (August 1-5)
- The Irrawaddy Business Roundup (August 6, 2016)
- Dateline Irrawaddy: ‘The Economic Policy Does Not Provide New Insights’
| This Week in Parliament (August 1-5) Posted: 05 Aug 2016 07:33 PM PDT  A view of the Union Parliament in Naypyidaw during its opening session on Feb. 8, 2016. (Photo: The Irrawaddy) The Bill Committee put forward a bill in the Lower House to annul the 1950 Emergency Provisions Act, which has been described as a threat to Burmese citizens' fundamental rights. The Lower House approved debate of the bill and invited lawmakers to discuss it at a later point in time. In the Upper House, Dr. San Maung Maung, a lawmaker representing Pegu Division Constituency 1, highlighted the negative consequences of drinking liquor and asked if the government planned to take a tough stance on production and distribution of homebrew and bootleg liquor as well as increase taxes. The deputy home affairs minister responded that alcohol taxes have recently been increased and the ministry had no plan at the moment to increase them again. Meanwhile, the health and sports ministry is conducting public awareness campaigns about liquor in conjunction with alcohol addiction treatment programs, he said. Tuesday August 2 In the Lower House, lawmaker Dr. Than Win of North Okkalapa Constituency urged the Union government to root out entrenched bribery and corruption in Burma. Parliament approved discussion of his proposal. The previous Union Parliament enacted an anti-graft law in August 2013, and formed an anti-corruption commission in March 2014, but there had been little success in eliminating corruption, according to lawmakers. In the Upper House, lawmakers seconded a proposal by Sai Wan Hline Kham of Shan State Constituency 3 that urged the Union government to address rampant drug dealing and abuse across northern Shan State, conduct public awareness campaigns and establish rehabilitation centers. Lawmakers argued that drug problems affect all of Burma, not only Shan State. Parliament noted the discussion and approved the proposal. Wednesday August 3 In the Lower House, lawmaker Khin Hnin Thit of Pantaung Constituency put forward a proposal urging the Union government to take action to reduce crime, describing crime as a hindrance to the rule of law. The lawmaker stated that murder and mugging rates in Rangoon increased between 2014 and 2015. The Lower House approved discussion of the proposal. Lawmaker Myint Lwin from Pazundaung Constituency asked if the government would allow the public to attend court hearings without restriction and take action against those who restrict attendance. Soe Nyunt, a judge on the Supreme Court, said that except in cases involving rape and sexual assault, hearings were held in open courts and the public could attend. He promised to take action against those who restricted people from attending court hearings. In the Upper House, lawmaker Kyaw Htwe of Rangoon Division Constituency 8 submitted a proposal asking the Union government to develop a comprehensive plan to address the annual flooding in the delta and coastal areas during rainy season and the drinking water scarcity across Burma in the summer. The Upper House approved discussion of the proposal. Dubbed the rice bowl of Burma, the delta, which covers Irrawaddy and Rangoon divisions and the northern part of Arakan State, suffers from rainy season floods, which lead to a decline in rice production, Kyaw Htwe said. Thursday August 4 In the Lower House, lawmaker Dr. Saw Naing from South Okkalapa Constituency asked what measures were being taken to ensure public safety on the Rangoon-Naypyidaw-Mandalay Expressway. Construction Minister Win Khaing replied that his ministry had taken a series of measures including deploying road patrols and erecting warning signs and guard rails at 22 black spots along the highway. The Ministry of Construction is seeking international loans to upgrade the highway, he said. In the Upper House, the minister for social welfare, relief and resettlement submitted a senior citizen draft law for discussion and the Upper House Bill Committee submitted its report on the draft law. Deputy Foreign Affairs Minister Kyaw Tint Swe put forward a Burma territorial waters draft law for discussion and the Upper House Bill Committee submitted its report on the draft law. Friday August 5 In the Lower House, lawmakers debated a proposal from Zaw Min Thein of Laymyatnar Constituency, which urged the Union government to strengthen embankments along the Irrawaddy and Ngawun rivers in Irrawaddy Division. Parliament put the proposal on record. In response to a lawmaker's question about how the government would support war refugees on the border and if there was a plan to mediate between clashing parties, Deputy Border Affairs Minister Maj-Gen Than Htut replied that since fighting broke out in Kachin State in June 2011, a total of 94 relief camps had been providing shelter for almost 40,000 refugees. The National Reconciliation and Peace Center is also taking steps to hold peace talks with both signatories and non-signatories of the Nationwide Ceasefire Agreement, he said. In the Upper House, Khin Aung Myint of Mandalay Division Constituency 8 submitted a proposal urging the Union government to design and implement a special plan to eliminate illiteracy among ethnic minorities, enable them to gain a university education and promote ethnic literature. Parliament approved discussion of the proposal. The post This Week in Parliament (August 1-5) appeared first on The Irrawaddy. |
| The Irrawaddy Business Roundup (August 6, 2016) Posted: 05 Aug 2016 06:48 PM PDT  India’s Food Minister Ram Vilas Paswan, pictured here in November 2014, said last week that the country is seeking to increase its imports of pulses from Burma to supplement its own food crop. (Photo: Adnan Abidi / Reuters) US Companies Upbeat on Burma Prospects Vietnam, Indonesia and Burma are the top destinations for US companies’ expansion plans within Asean, a report states. The poll of senior executives representing US companies in all ten Asean countries revealed that more than half said the region's markets have become more important for their companies' global bottom line. A total of 78 percent of the companies expect their profits to rise in 2017, according to the ASEAN Business Outlook Survey, which was released on Aug. 4 by the US Chamber of Commerce and the American Chamber of Commerce in Singapore. Of US investors in Burma, more than half employed fewer than 50 employees in the country, while 26 percent had between 500 and 2,000 staff. More than a quarter of the companies were planning to expand and 87 percent expected their workforce to increase this year. The investors ranked improving the banking and financial system, improving overall governance and efficiency, and investing in health and education as the most pressing internal economic reform challenges facing Burma. Skills shortages in the labor market were also identified as a challenge by the investors. Among the most difficult skills to find among graduates, the investors listed "analytical [skills] and problem-solving" as well as "communications and cross-collaboration" and technical skills. The chief shortages in technical skills were in management and leadership, accounting, foreign languages and information technology. Aeon and Creation Group Cooperate Leading Japanese retail operator AEON is set to enter the Burma market after it concluded a joint venture with the Rangoon-based Creation Myanmar Group of Companies (CMGC). Aeon Orange Co, the joint venture between Aeon Co. and CMGC, has acquired assets including 14 supermarkets operated by CMGC-affiliate Hypermart Asia Co. As well as supermarkets, CMGC operates around 130 specialty stores in Burma and a real estate business. It holds licenses to sell more than 20 foreign brands, including Adidas and Mango. Aeon said in a press release that it believed cooperation with CMGC was indispensable due to the groups' retail business infrastructure and knowledge of the local market. Aeon brings logistics, human resources and IT know-how as well as global sourcing strength and quality control as well as $8.1 million in capital to the deal, according to the release. AEON Orange plans to open its first supermarket by the end of this year. Indonesia Plans Event to Boost Bilateral Trade Indonesia is seeking to boost bilateral trade with Burma, and its embassy in Rangoon along with other organizations will hold a business matching event in the city on August 18. Industry participants and experts from the insurance, banking, agriculture, real estate, pharmaceuticals, education and many other sectors are due to take part in the event organized by the embassy, the Union of Myanmar Federation of Chambers of Commerce (UMFCCI) and the Jakarta branch of the Indonesian Economists Association. The event will take place at the UMFCCI head office in Dagon Township. Indonesian foreign investment approved in Burma up to June of this year was US$35.39 million or 0.07 percent of total foreign investment, according to figures from the Directorate of Investment and Companies. Among Asean countries, Singapore is the top investor in Burma. Investments from Singapore worth $12 billion [23.7 percent of total FDI] were approved up to June this year. Myanmar Citizens Bank to sell shares soon on YSX Myanmar Citizens Bank is preparing to trade soon on the Yangon Stock Exchange [YSX] and has issued a notification to shareholders about the process. Shareholders have been directed to open a securities account and register electronically with the YSX-approved Myanmar Securities Exchange Center (MSEC) by August 12, in order to be eligible to trade their shares on the opening trading date. If shareholders miss the date, their shares will be temporarily registered in a special account in line with YSX regulations, according to the announcement on August 5 by MCB in the state-run Myanmar Ahlin newspaper. Those shares may not be traded until the bank is officially listed and the shares are transferred to a securities account. Shareholders are informed that they can open a securities account any time after August 12 with the MSEC. MCB said it will notify shareholders through newspapers, its website and the YSX website of the date when trading will open. The MCB was listed on the YSX in December 2015. Currently First Myanmar Investment (FMI), Myanmar Citizens Bank, Myanmar Thilawa SEZ Holdings Public Limited (MTSH), First Private Bank and Great Hor Kham are listed on the YSX, but only FMI and MTSH have opened sales of their shares. Panasonic Smartphones to Enter the Market Booming demand for mobile devices has prompted Panasonic to expand its smartphone business to Burma and Bangladesh before the end of the year. Panasonic entered the consumer smartphone business around two-and-a-half years ago and has seen "tremendous growth" since, the company's India Business Head (Mobility Division) Panjay Rana was quoted as saying in The Financial Express. About 80 percent of the company's current smartphone revenues are from India, while other markets include Saudi Arabia and African nations. On August 1, Panasonic launched a new smartphone in India – the ELUGA Arc 2 – for Rs 12,290 (218,000 kyats). The company sells around eighteen mobile phone devices, of which three support 3G and the rest are 4G-enabled. India Seeks to Boost Imports of Burma Pulses A domestic shortfall means that India is seeking to import pulses from Burma and African countries, India's food minister Ram Vilas Paswan has said. India is the world's leading consumer of pulses, but a demand-supply gap of about 7.6 million tonnes has contributed to high inflation, with double digit annual increases in prices of sugar, vegetables and pulses, according to Reuters. Chickpea is the most consumed pulse in India, and prices have more than doubled in a year after a series of droughts curbed output, prompting authorities to suspend futures trading in the food grain. Burma ranks fourth in the world in the production of chickpeas, according to an international crops research group. The post The Irrawaddy Business Roundup (August 6, 2016) appeared first on The Irrawaddy. |
| Dateline Irrawaddy: ‘The Economic Policy Does Not Provide New Insights’ Posted: 05 Aug 2016 06:38 PM PDT
The NLD government released its economic policy following the completion of its 100-day plan. The policy has 12 points and four objectives. There have been criticisms that the policy is too vague and not sufficient to revive the country's economy. Some argue that the policy is good but too difficult to implement. U Maung Maung Lay, you are the vice chairman of the UMFCCI and also a businessman and you were deeply involved in business affairs during the former military regime. What is your view of the NLD's economic policy? Maung Maung Lay: The original idea of the 100-day plan comes from countries like the UK and the United States. They assume that momentum, popularity and authority [to introduce changes] of a new administration are highest in the first 100 days in office. Usually, those countries adopt their national economic policy during the first 100 days. There is an English saying: "Better late than never." It is better to be late than not adopt an economic policy at all. It has vision and mission and elaborates 12 points. Generally speaking, the policy is an elaboration of the NLD's party manifesto. It includes the NLD's dreams along with necessities for the country. However, it does not provide new insights into the country's economy. TZH: Ko Thit Nay Moe, what is the response in business circles to the NLD's policy? Thit Nay Moe: Businessmen say the policy is too broad. Businessmen and economists criticize that the policy does not explain the current economic position nor set a timeframe for particular goals. Some points in the NLD's manifesto are not included in the economic policy, for example, the role of the Central Bank. Economists have pointed out that the policy says nothing about what role the Central Bank will play or how the policy will promote stability—by stabilizing commodity prices or the inflation rate, for example. TZH: We found some of the points interesting, including that the NLD would adopt a separate policy to attract foreign investment—which is critically important for development. Many argue that our country's infrastructure is not ready to attract new foreign investment, citing exorbitant land prices and an unreliable electricity supply. Theoretically, the NLD is designing a policy to boost investment. But practically, what should their priorities be? MML: Attracting foreign investment depends on the politico-economic status of the country. The first necessity is political stability. Every foreign investor wants that. The NLD's economic policy seeks to bring about political stability. Secondly, foreign investors will take internal peace and infrastructure into consideration. The previous governments exercised a so-called open door economic policy. But, investors found that the policy was not clear or coherent. It was a swinging door policy and they did not like it. All investors—whether in manufacturing, service, or industry—make calculations before investing abroad. They invest not because they love a country, but because of profits. If it is unlikely that they can reach targeted profits, they will not invest. In Asean, member countries compete for foreign investment and solicit such investment competitively. It is important that our economic policy is clear, detailed and allows for a favorable investment environment for potential investors. It is also important to adopt a clear framework. The most important thing is infrastructure mainly, electricity. Potential investors will consider everything before investing—security, accessibility to electricity, if rental prices for land and offices are fair, projected profits, and availability of transportation for exports. The government needs to prepare for this. It needs to cut the red tape and walk the walk in every stage of the process from company registration to customs clearances, tariffs and money transfers. While the government should work toward ending sanctions, it also needs to prioritize and take firm action toward promoting the banking sector in order to smooth financial transactions. Today, the world can be characterized by competition. If we are too slow, no one will want to invest in our country. TZH: The United States has lifted most of the sanctions against the government now, such as sanctions on government banks. The remaining sanctions are targeted at individuals. Although sanctions have eased, the economy has not picked up as expected. Why? MML: There are over 100 individuals on the US Specially Designated Nationals List [SDN]. Any financial transactions in US dollars made between Burma and other countries have to go through a US bank, which has to check if people on the SDN list are involved in the transactions. It is a tiring job for the bank, because it has to check not only the listed individuals but also all of the companies related to them. Banks do not want to handle financial transactions related to Burma and this serves as an impediment to the economic performance of our country. Most Burmese businessmen want to do financial transactions in US dollars, because the pound [£] and euro [€] are not stable following the UK's vote to leave the European Union. The difficulty in conducting financial transactions serves as a hindrance to the economic progress of the country. TZH: Ko Thit Nay Moe, we heard that businessmen are not happy with the NLD's economic approach in the first 100 days or its economic policy. What were their expectations? TNM: There was a lot of criticism of the NLD's actions regarding the economic sector. Other than the commerce minister stating that his ministry aimed to triple the country's exports within five years, the new government said almost nothing about its plan to rescue the country's economy. The new Myanmar Investment Commission (MIC) was formed recently, which caused delays in scrutinizing and approving investment proposals and hindered businesses. The economic policy was finally released four months after the new government came to power. But then, as I have said before, the policy lacks clarity and fails to sort out priorities or set a timeframe. Businessmen said it was difficult for them to make predictions under the current policy and they would have to wait and see. TZH: U Maung Maung Lay, do you think the NLD's policy will help revive the economy within the next four or five years? MML: It has adopted a framework and defined the objectives. Previously, there was no objective and the policy was like a drifter—reaching nowhere. Now, we have a framework—in other words, a playground. And we have to see how the government will play. Considering the overall situation, their position is good. To realize dreams, the government alone is not responsible. Citizens are obliged to do their fair share. Both the will of the government and the participation of the public are important. I found that the NLD's policy aims to guarantee sustainability and inclusiveness, which is good. But it is important that everyone participates with consciousness. TZH: Thank you for your contributions! The post Dateline Irrawaddy: 'The Economic Policy Does Not Provide New Insights' appeared first on The Irrawaddy. |
Thalun Zaung Htet: Welcome to Dateline Irrawaddy! This week, we'll discuss the national economic policy released by the National League for Democracy [NLD] government. Vice chairman of the Union of Myanmar Federation of Chambers of Commerce and Industry [UMFCCI] Dr. Maung Maung Lay and The Irrawaddy's Burmese business reporter Ko Thit Nay Moe will join me for the discussion. I'm Irrawaddy Burmese editor Thalun Zaung Htet.| You are subscribed to email updates from The Irrawaddy. To stop receiving these emails, you may unsubscribe now. | Email delivery powered by Google |
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